GUNNING FOR DOLLARS: FIREARMS CAN YIELD HIGH RETURNS    

By:  Paul Cole    

Aside from the obvious use of firearms, guns bought as investments have also been shown to yield strong returns when sold properly.   For collectors, firearms tend to hold and increase their value, regardless of the economy.  So, especially, in today's environment, sellers can reap some positive returns. 

With an estimated 200 million firearms owned by private parties in the United States, the dollar value is in the mega billions.  Many of these owners inherited the guns and stowed them away some place.  Others may be retirees or seniors living on limited incomes.  None may know what treasure they could be sitting upon.

Paul Cole, president of Gun World in Burbank, CA, the state's largest firearms dealer, says, "Many people with gun collections may not even be aware of the value of these assets.  Particularly, in this economy, sale of these firearms could generate some much needed income for owners."

In particular, antique guns and other collectible firearms are a major business.  According to the American Shooting Sports Council, there are some three million gun collectors in the United States alone.  Many of these collections may have been handed down for generations.  Some firearms may sell for as little as $200, but some rare pieces could go for one million dollars or more.

But, before going off to sell your bag of guns or running an ad in your newspaper, Cole warns there are a number of things to consider.  “If you want to get the highest prices for your firearms, he says, "you need to involve an expert who is skilled in evaluating all aspects of a guns' value, including age, historical significance, uniqueness, materials, and workmanship."

Sellers have several options when it comes to antique firearms appraisal. First, the gun can be taken to a licensed gun dealer such as Gun World or a museum. They will have the expertise and reference materials needed to make an accurate appraisal of the firearm.

Cole, who has 35 years of evaluating, buying and selling firearms, advises that, when an appraisal is delivered, it should come with the supporting documentation used to determine the price. He says, "If the appraisal doesn't come with this information, the seller should ask for it. The people that are interested in buying this item will want to see the appraisal documentation.

A licensed dealer such as Gun World can also assist in the selling process.  The gun could be purchased by the dealer outright or put on consignment, in which case, the dealer would use his or her resources to find a buyer in exchange for a predetermined commission.

Cole states that another, important factor is establishing ownership and registration in order to sell a firearm.  He notes, "In general, guns less than 100 years old must be licensed in order to sell them.   If a gun was made prior to 1899, it is considered an antique and federal law does not require a license to trade or sell it."

He adds that individual states may impose further regulation and, some, such as California, have extremely rigid gun laws that prevent individuals from selling any firearm without certain documentation.   "A certified appraiser can tell you with certainty when the gun was manufactured and whether there are any restrictions associated with its sale.  For example, antique guns that have been modified in certain ways require a license to be sold, so make sure you know what you have before you try to sell it."

Cole concludes, "When it's time to sell some or all of your collection, make certain you have covered all of your bases, "from proof of ownership to registration to appraisal.  Like any other investment, you must be knowledgeable and prepared in order to earn the greatest return."

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